Significant portions of Mumbai’s landmark Dhobi Ghat in Mahalaxmi are reportedly being absorbed by new construction projects, signaling a critical conflict between urban expansion and the city's functional heritage sites. The development impacts licensed washermen holding historical land rights.

The Railway Land Development Authority has shortlisted Lodha Group, Sobha Ltd, Dineshchandra R Agrawal Infracon, and Millennia Realtors for the redevelopment of a prime 2.5-acre Mahalaxmi land parcel worth an estimated ₹10,000 crore, while several prominent developers failed to make the cut.

A new DCPR 2034 rule by the Brihanmumbai Municipal Corporation (BMC) targets the expansion and rehabilitation of the Mahalaxmi Racecourse. The new Regulation 13(10) applies only to the Mahalaxmi Racecourse, not other BMC clubs, gymkhanas, or designated plots.